Explain what legal argument could raised in letishas defense

Assignment Help Business Law and Ethics

Reference no: EM131510352

Assignment: Be Careful What You Sign

Sudson Washer and Dryer Service is in the business of leasing used washers and dryers to apartment landlords for a contracted lease term. The coin-operated machines are used by apartment tenants. Letisha, 25, a human resource clerk, owns a five-unit apartment complex. While she resides in one of the units, the others are occupied by tenants. Sudson contacts Letisha and offers to lease one washer and one dryer.
The washer and dryer in Letisha's apartment complex are old and worn-out. Anxious to keep her tenants happy, Letisha meets with Sudson's salesman who presents her with a one-page agreement for the use of one washer and dryer for five years. The five-year term is standard and the front page of the contract states the lease period. Letisha (as lessee) and the salesman for Sudson (as lessor) sign the front page of the contract and Letisha retains a copy of the signed agreement.

The salesman did not inform Letisha of, nor did she bother to read the back of the agreement which contained additional terms, one of which is an "automatic renewal" clause that states: "If the lessee fails to provide a 90-day written notice to terminate the contract by certified mail to the lessor, the five-year lease term period shall automatically renew for three additional five-year terms and shall only be subject to termination by the lessor."

Letisha uses the machines for the five-year period and just a few weeks prior to the end of the term, calls Sudson to provide them with a courtesy notice saying she is not going to renew her agreement. The operator replies that since she failed to provide the 90-day written, certified notice of termination, the lease will be renewed for three five-year terms or another 15 years.

Letisha says that she never saw that clause. The operator replies that it was her obligation to read the back page of the agreement and Sudson will require her to make monthly payments for the next 15 years. Letisha does not know what recourse she now has.

Research whether Letisha has a contract formation or enforcement defense based on the legal and ethical use of automatic renewal clauses in lease agreements, using your textbook, the Argosy University online library resources, and the Internet. Based on the facts of the case and research, write an analytical paper. In the paper, respond to the following questions:

• If Letisha does not pay and Sudson sues her for breach of contract, what legal arguments could be raised in Letisha's defense against the enforcement of the automatic renewal clause? Explain.

• What legal arguments could be raised by Sudson in support of the enforcement of the automatic renewal clause against Letisha? Explain.

• What ethical issues are raised, if any, by Sudson's practice of using the automatic renewal clause in their lease agreements? Explain.

• Does the Uniform Commercial Code Article 2A apply in this case? Explain.

• Are there any government or private entities available to Letisha for lodging complaints about businesses which treat consumers unfairly? Explain.

• If Sudson sues Letisha for breaching the contract's automatic renewal clause, what do you think the outcome of the case will be? Explain.

Write a five-page paper in Word format. Apply APA standards for writing style to your work.

Reference no: EM131510352

Questions Cloud

Define at least two ethical theories in your paper : Define at least two ethical theories in your paper, and identify and describe the impact that ethical practices have on persuasion

What is news in is technology : To complete the current event activity, perform research utilizing resources such as the Internet, magazine publications, newspapers, and journals on a current.

Identify the business problems of each of the cases : Identify the business problems of each of the cases .Rank-order the critical issues stated in the cases.Evaluate the proposed solutions.

Examine the most significant benefits of radius : Suppose you are a Systems Administrator, and you have been tasked with implementing RADIUS to support authentication, authorization.

Explain what legal argument could raised in letishas defense : what legal arguments could be raised in Letisha's defense against the enforcement of the automatic renewal clause? Explain.

Analyse the impact of the environmental factors : Analyse the impact of the environmental factors.Evaluate the level of competition within the industry in which Tassaloperates.

Challenges of enforcing information security policies : Analyze the benefits and challenges of enforcing information security policies within government agencies and organizations

What challenge or opportunities might organization recognize : What challenges or opportunities might an organization recognize with regard to the government and corrupt practices in the region?

What we learned about each here in the materials and course : A newspaper columnist signs a contract with a newspaper chain. Several months later she is offered a position with another newspaper chain at a higher salary.

User Account

All Pages